166 (#228) ############################################ WOOLLEN AND WORSTED SPINNING (h) Possibilities of extension under an organized scheme of development. These and many other matters should be fully taken cognizance of by those who wish to have a really efficient organization with possibilities of extension, still main- taining the desired organization. Not less important are the estimates of costs and returns for given expen- ditures. The mistake is too often made, however, of saving capital expenditure at the expense of efficient production; and as, roughly, £1,000 worth of machinery will turn over £50,000 of material per annum, the folly of making this mistake is very evident. Woollen Yarn Costing-In woollen spinning the conditions of running and output vary so much from time to time that the only safe and satisfying method to adopt is to- (a) Perfectly organize returns of all expenditure; (6) Perfectly organize returns of all produce ; (c) Perfectly organize returns of all income ; (d) Carefully work out (i) cost per yardage ; (ii) income against expendi- ture. Every three months * the figures so obtained should be carefully analysed and acted upon. It may be taken for granted that any returns which are not useful—directly or indirectly-are a waste of time and may be dispensed with. Thus what the woollen spinner really needs is- (a) A current method of costing his yarns to enable him to give immediate quotations of price; (b) An exact method of costing his yarns obtained by taking total expenditure and total output over a given period—say three months-and dividing the one by the other ; * In some sections even daily returns may be instituted. 168